Visa Goes Live With Blockchain-Powered Business Payments Service

The world of B2B payments could be about to get a lot simpler for businesses of all sizes thanks to a new release from Visa. The network uses elements of blockchain technology to allow financial institutions to rapidly process global corporate client payment transactions at lower cost.

The launch of the B2B Connect will cover over 30 global trade corridors, with the company planning to reach up to 90 markets by the end of this year.

The company says it will utilise a non-card infrastructure that incorporaties Linux-based Hyperledger distributive ledger technology.

Global payment services giant Visa has announced it will expand into the B2B cross border payment market - with the help of distributed ledger technology.

It is important to note here that Visa B2B Connect facilitates cross-border transactions and reduces time spent on the completion of the whole process. The benefits of the ledger mean that financial institutions can see payment fees upfront and transactions are settled quicker, in as little as one to two days. That digital identifier tokenizes an organization's sensitive data, including banking details and account numbers, sidestepping the vulnerabilities to fraud that exist when sending checks, ACH and wire transfers. Velocity, security and control of transactions, as well as lower counterparty risks are essential for a successful business with global partners.

Partners, including Bottomline, FIS and IBM are integral parts of the future scale of Visa B2B Connect.

Visa's B2B Connect platform can also support and work alongside legacy systems, meaning banks don't have to completely abandon older systems during the transition.

News portal, Forbes reported that Visa is also working to raise the speed of transfers for its clients and make them more transparent. As such, Visa will have access to FIS's client list who can choose to use the Visa B2B Connect for payments. Instead, Visa will count on its experience in complex payments, compliance, and cybersecurity.

Worldwide payments are often routed through several intermediaries who end up taking their cut and piling on fees, ultimately borne by the end users of the banks.